Main reasons to commence your Ilkeston lease extension
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<h3> Top reasons for lease extension now:
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Increase your lease and increase your <a href="http://www.lendermonitor.com/conveyancing/loc/ilkeston">Ilkeston</a> property value </h4>
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Ilkeston leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. It is the case that most Ilkeston tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Ilkeston you would be well advised to see if your lease has between seventy and ninety years left. There are good reasons why a Ilkeston flat owner with a lease having around 80 years unexpired should take steps to make sure that a lease extension is put in place without delay <h4>Ilkeston property with a lease extension has roughly the same value as a freehold</h4>
<p> It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the property will be worth the same as a freehold for many years ahead.
<h4>Mortgage lenders may decide not to lend with a short lease</h4> Banks and building societies vary in their lending criteria. Some draw the line at seventy five years remaining on the lease; others may be willing to lend with anything in excess 70 years. Below sixty years, it may be difficult to get a mortgage in the first place.
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<th> Requirement
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<td>Halifax</td>
<td> Minimum 70 years from the date of the mortgage.
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<td>Leeds Building Society</td>
<td> 85 years remaining from the start of the mortgage.
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<td>National Westminster Bank</td>
<td> Mortgage term plus 30 years.<br /><br />For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage.
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<td>Virgin</td>
<td> 85 years at the time of completion. If it's less, we require it to be extended on or before completion.
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<td>Yorkshire Building Society</td>
<td> 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower.
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Why use us for your lease extension in Ilkeston? </h4>
<p> Using our service gives you better control over the value of your Ilkeston leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell.
The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions. <h4>
Ilkeston Lease Extension Case Studies:
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<h5> John, Ilkeston, Derbyshire,</h5>
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John was the the leasehold proprietor of a conversion apartment in Ilkeston on the market with a lease of fraction over 61 years outstanding. John informally approached his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were John to exercise his statutory right. John procured expert advice and secured satisfactory deal informally and ending up with a market value flat.
<h5>Ilkeston case:</h5>
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Last Spring we were contacted by Dr T Rose , who
took over the lease of a studio flat in Ilkeston in July 1995. We are asked if we could shed any light on how much (roughly) premium could be to extend the lease by an additional years. Similar homes in Ilkeston with a long lease were in the region of £184,000. The average ground rent payable was £55 billed quarterly. The lease terminated in 2079. Taking into account 53 years outstanding we approximated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 plus fees.
<h5>Ilkeston case:</h5>
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In 2010 we were contacted by Ms Alexandra Torres who, having took over the lease of a ground floor apartment in Ilkeston in May 2012. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by ninety years. Identical residencies in Ilkeston with a long lease were valued about £290,000. The mid-range amount of ground rent was £45 invoiced yearly. The lease ran out on 2 November 2099. Given that there were 73 years outstanding we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus expenses.
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